GLOBAL MARKETS-Asia shares slip on news U.S. to blacklist more Chinese firms

* Asian shares slip after Reuters report on U.S.
blacklisting
* Sentiment still strong on hopes on U.S. stimulus, vaccines
* All three major U.S. stock indexes at record highs
* Dollar index near 2 1/2-year low
* European stocks seen down 0.3-0.4%

By Hideyuki Sano
TOKYO, Dec 18 (Reuters) - Asian shares slipped on Friday
after Reuters reported that the United States is set to add
dozens of Chinese companies, including the country's top
chipmaker SMIC 0981.HK , to a trade blacklist later in the day.
Still, the prevalent underlying mood on global equities
remained upbeat, as the prospect of a major U.S. coronavirus
relief package meant investors were keen on picking up stocks
and other risk-exposed assets.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS dropped 0.6% from Thursday's record. Mainland
Chinese shares .CSI300 fell 0.4% while Hong Kong's Hang Seng
.HSI lost 1%.
Washington is expected to name some Chinese companies that
it says have ties to the Chinese military, sources said, adding
in total around 80 additional companies and affiliates to the
so-called entity list, nearly all of them Chinese. Japan's Nikkei .N225 dipped 0.2%, facing strong resistance
around 27,000 while European shares are seen weaker, with Euro
Stoxx 50 futures STXEc1 down 0.45% and FTSE futures FFIc1
falling 0.3%.
U.S. S&P 500 futures ESc1 eased 0.24%, a day after their
underlying index .SPX gained 0.58% to close at an all-time
high of 3,722.48.
Global equities on the whole basked in optimism that a deal
will be reached over a fresh U.S. economic stimulus package.
Lawmakers from both major U.S. political parties said
failing to agree was not an option, and earlier Republican
Senate Majority Leader Mitch McConnell said talks could spill
into the weekend. Many investors saw the passing of new measures to support
the economy as imminent after data showed the number of
Americans filing first-time claims for jobless benefits
unexpectedly rose last week. Markets were encouraged that the United States stood ready
to ship 5.9 million doses of a new coronavirus vaccine developed
by Moderna MRNA.O that is on the cusp on winning regulatory
approval. "Even though the current state of outbreak is so bleak,
markets are assuming vaccines will help the U.S. achieve a herd
immunity next year and that everybody will be dancing in spring,
with pent-up demand for consumption exploding," said Kozo Koide,
chief economist at Asset Manegement One.
"Fund managers would be wise to ride on this bandwagon for
now, but markets appear to be underestimating uncertainties.
It's not known exactly how long vaccines will protect you. There
will be disappointment if markets learn they are not like
measles vaccines, one shot of which will last for life," he
added.
The bullish mood supported many currencies against the
safe-haven U.S. dollar, while other assets ranging from risky
bitcoin to safe-haven gold also rose.
The dollar index stood at 89.977 =USD , having slipped
below 90 for the first time in two and a half years.
The euro changed hands at $1.2246 EUR= , having hit a
two-and-a-half-year high of $1.2273 on Thursday. The dollar
stood at 103.37 yen, after having slipped to a nine-month low of
102.88.
As expected, the Bank of Japan extended a package of steps
aimed at easing corporate funding strains caused by the
coronavirus pandemic. The British pound slipped 0.40% to $1.3534 GBP=D4 , off the
two-and-a-half-year high it hit on Thursday, taking a minor hit
after British Prime Minister Boris Johnson's office said trade
talks with the European Union were in a "serious situation".
Bitcoin rose 1.5% to $23,128 BTC=BTSP , extending its
weekly gains to 21.3%, with a break of the $20,000 mark on
Wednesday triggering a fresh wave of buying binge. Spot gold XAU= eased slightly to $1,881.6 per ounce after
having hit a one-month high of $1,896.2 in the previous session
while copper CMCU3 hit its highest levels in almost eight
years.
Likewise oil climbed to a nine-month high before easing
slightly in Asia on Friday.
Brent crude LCOc1 futures traded at $51.34 a barrel, down
0.3% on day but not far from Thursday's peak of $51.90, having
gained 2.7% so far this week.

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